(MCT) — BLOOMINGTON — Heartland Bank and Trust Co. has assumed the deposits and assets of the failed Citizens First National Bank, headquartered in Princeton, from the Federal Deposit Insurance Corp.
Heartland, headquartered in Bloomington, now has assets of $2.9 billion and offices in 48 communities in Illinois and northeast Missouri.
By acquiring Citizens First National’s $924 million in assets, Heartland increased its assets by nearly 50 percent. It also acquired $869.4 million in total deposits from Citizens First National.
The FDIC took over Citizens First National after the Office of the Comptroller of the Currency determined the bank had incurred losses because of “unsafe and unsound practices.”
The bank had 21 branches in 17 northern Illinois communities, including Oglesby and Peru. They reopened Saturday as Heartland Bank locations.
This is the fourth failed bank acquired by Heartland Bank, and it is the largest acquisition, according to Heartland spokeswoman Amy Bartels. Heartland Bank acquired the failed Bank of Illinois in Normal in 2010.
The FDIC said Citizens First National Bank’s failure will cost the Deposit Insurance Fund an estimated $45.2 million. The acquisition by Heartland Bank was considered the least costly resolution, according to the FDIC.
Citizens First National customers can continue to use their checks and ATM/debit cards to access their funds. Direct deposits and automatic payments will also continue as scheduled.
Fred Drake, Heartland’s chairman and CEO, said in a statement, “This is an opportunity for us to expand into this market, and carry on the community banking tradition in those communities. We think they will be good markets for Heartland Bank in the long run.”